breaking market news, dow futures down triple digits as wall street adds to friday's big losses the selloff goes global, red arrows overseas. on the major market move and it's a big day in the city of brotherly love when the philadelphia eagles win their first ever super bowl. congrats to jim cramer it's monday, february 5th, 2018. and "worldwide exchange" begins now. ♪ all i do is win no matter what ♪ good morning a verywarm welcome to "worldwide exchange" on cnbc i'm wilfred frost.

>> and i'm courtney reagan in for sara eisen thanks for joining us today. this monday morning after the super bowl, if you're up, you might be a little tired. >> but may also want to be somewhat elated if jim is watching i hope he's asleep after a big night of celebrations. if he's not, congratulations to him and all eagles fans. let's get to the markets a roller coaster ride last week particularly when we saw the dow sell off 2.5%. the nasdaq and s&p both down 2%. for the week as a whole, the dow was off more than 4% nasdaq down 3.5% and s&p in between those two dow about 127 points, nasdaq 12, s&p, 9, clearly much more muted than that massive selloff we saw on friday. worth pointing out on friday, all 11 sectors were lower for the week energy materials were the worst. health care and tech also pretty

bad. and yield has been a crucial factor for markets over the last couple of weeks. the fact that yields have been rising have spooked some investors. they got to 2.85 on friday clearly, it's still a trend, as you can see to the right-hand side of that chart of yields rising which has hurt equity prices oil prices as well energy very much the worst sector this week down more than 6%. somewhat surprisingly crude was down 1%. it was weighed partly by the likes of chevron and exxon with their numbers and oil prices declining sharply. down alittle today, 0.4% >> taking a look at what happened around the world in trade. we mentioned at the top of the show, world markets also falling in the wake of what happened in u.s. markets friday. you can see the japanese nikkei down 2.5%. the hang seng down 1%. the shanghai bucking the trend

that was up 0.75%. really the only indices across europe or asia higher. take a look at what's going on in europe, very much sort of catching the cold that we started over here in the united states on friday and as we're continuing this morning, you can see european markets are down as well you have the ftse 100 down a percent. the worst of the bunch spain down 0.5%. germany down 0.6%. the dollar board for you, we did see the dollar break its recent five-week losing streak and rise last week but only slightly and it was only really friday's 0.5, 0.6% gain that was a day of meaningful gains so the dollar hasn't really been a factor in the market selloff in the way that yields have. today, the dollar market not doing too much relative to other markets. it's down about 0.25% but flat against the euro and pound gold prices down 1% this week.

pretty much flat this morning at 1338 and rounding off bitcoin which has had a tremendous fall, mid-december highs and down below 8,000 for bitcoin. let's talk more about the market selloff. steve grasso director of international sales. steve, clearly, friday, massive selloff 2.5% for the dow are you encouraged or worried to see us down triple digits. in percentage terms we're not down nearly as much as friday. >> thanks for having me. i would think, indeed, we see a little more weakness from around the world. we were talking about a synchronized global growth story. and now it's a vink crow niced global selloff i think courtney had said the rest of the world is catching whatever we had on friday. i think that's normal and natural. i think it's healthy i think that we should probably sell off early what would really be

constructive if we see the markets rally after the opening. we sort of need that follow-through we had that selloff on friday. it couldn't have been a one-day event. we need to see at least a half day for recovery that would be healthy to me. >> so, do you not think we're still overvalued here. some folks have been calling for a correction for quite sometime. yes, we lost more than 2%. but that's 2% from where we were >> totally, courtney if you look at the market, this is the second longest time that the s&p has been above the average in a matter of days. i should say on a day level. we were 6% basically above the 50-day moving average, 8% after the 100-day. and 12% on the 200-day average if you think about corporate tax, i don't think people are looking at this as the right prism. this is the lowest corporate tax

in a year's decade what does that mean tour capx, where doll the corporate buybacks come back in. i think if people are looking for a deeper dive, maybe they'll be disappointed. >> steve, it's not only a u.s. selloff, better an global selloff as we're reminded this morning. when we look at the international markets, the likes of ek, the likes of germany, almost applies to japan, not quite. those markets are now down year to date. they're not even still high like we are in the u.s. because of the strong january is that something that we have to take note of it these are the markets where growth is improving and everybody is bullish and yet, those markets are fully in the red for the year as a whole. is that a worrying sign? >> i don't know if it's a worrying sign. we did great last year and everyone else is doing better. i think this year, you see we're at the tip of the sphere, but we're getting that back in line

with with a more competitive business environment i think that would be expected i'm not concerned if we're not but the corporate tax rate where you put money, i would say in the retail sector that courtney is fully aware people have more money in their pocket people have the corporate tax cut. sentiment is high. look for that secretary tore rebound. >> steve, quickly, elsewhere, one other sectors, as i mentioned earlier, all 11 s&p sectors were lower some of them huge. energy down over 6%. even though grud down 1% which markets are you looking to dip back into as far as you feel like it's the right moment >> if you look at energy, energy has done nothing for energy. and it's done nothing for five years. i would still avoid that you have the united states actually becoming the saudi arabia of oil production and basically through nat gas

and the way they reproduce we have more rigs coming on more than ever now. i would avoid energy >> steve, thanks for joining us. steve grasso joining us there. among the stocks to watch, wells fargo, shares are down sharply this morning as investors brace themselves for the first trade day since friday evening's unprecedented reprimand from the banks per casive and consistent misconduct dating back to the scandal. it the fed will limit wells fargo's growth by capping assets it will cost them up to $400 million in earninging this year alone, outgoing chair janet yellen admitted that the punishment, quotes was unique and more stringent than other banks in the past. the bank will risk a new risk bank management plan in the next

60 days. concurrently, wells fargo is also replacing four board members following three changes in 2016 and three last month as we have a look at the share price, court, it's down 7.5% in the premarket. most of that decline came late friday after the close but this is unprecedented. >> and we didn't know anything like this was coming >> no, exactly the time line is fascinating janet yellen did mention this in a press conference in september that they were looking the it. and we heard nothing since then. clearly, the news came on the final day of the ten-year. consent order has to be signed by the banks, the precise day it was announced when wells fargo and all board members signed the consent order. my senses tell me that was a couple weeks' conversation either way, it's coming very close to the end of her tenure you know, is that politicization in the timing of this, why did

it take the fed so long to act the aim 17-month delay you have to apply to the wells fargo board and deck tiffs as well they've said they made change which is means the risk management structure is now in a good place and yet, the fed still feeling like it's time to act. so, you know, that delay in timing from so long when these issues became public is a big question mark and blow to both sides. the bank and the fed, you have to say >> quite a big bit of news on friday. in deal news, broadcom planning to up itsed by for qualcomm >> if at first you don't succeed, try again broadcom is playing to bid for qualcomm today $120 billion the largest technology deal ever $80 to $82 per share

broadcom plans to offer qualcomm a higher breakup fee in the event that regulators provide the deal to broadband and data it makes them attractive to qualcomm. qualcomm is privately in talks of its own to buy semiconductors and also involved in a patent dispute with apple over licensing. qualcomm up 3.5% in trading. and broadcom up 4.5% >> thank you, landon an investigation is under way to a deadly amtrak train crash in south carolina. it happened early sunday morning when an amtrak train slammed into a csx train the investigators from the ntsb said a lock switch diverted the train off to a sidetrack where the csx was parked

csx maintenances all of the signal systems in the area csx releasing a state saying in part it will continue to work with investigators into the cause of the crash up next, the selloff goes global asia and europe both in the red today. we're live in singapore and london, straight ahead as we head to break, here's another check on u.s. futures for you. where we may be opening wndo 144 points on the dow. the s&p down banging their head on a low ceiling. drinking spoiled milk. camping in poison ivy. getting a papercut. and having their arm trapped in a vending machine. but for everyone else, there's directv. for #1 rated customer satisfaction over cable, switch to directv and get a $200 reward card. call 1.800.directv

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this is cnbc breaking news, market selloff good morning welcome to "worldwide exchange." i'm wilfred frost. let's get to the market, comes after a 2.5% selloff for friday. dow up 3.5, nasdaq up 5.5. and triple digit for the dow, 153 points and yields has been a big factor over the past couple weeks we've seen yields rising that is a factor for why we're seeing equities sell off. 2.8 friday but the ten-year significantly elevated from the start of the year there is also a selloff around the rest of the world. we've got full team coverage cnbc's sri jegarajah is standing by in london let's start with nancy

hungerford live in zyngsingapor. is. >> hi there. almost in lockstep with the dow jones move, 2.5% for the downside here. this is the worst for the nikkei 255 since the presidential election make no mistake about it, this is a broad selloff higher by 0.7% yes, there was encouraging economic data coming out of china for the services sector. the pmi beating some forecasts, going at its fastest pace in six years but there was weakness in small caps and likely state-backed funds were coming in and buying some big heavyweights take a look at heavyweights on the move in shanghai the big banks higher on the range of 4 all the way to 5% elsewhere, it was a rough day for the tech sector across asia.

and bearing the brunt of this selloff. you see weakness across the board here and key suppliers for apple. this comes after we tracked the big dip in apple stock on friday overall, investors in singapore, keeping an eye on the yield in the united states. courtney, back to you. >> thank you, nancy. let's turn to europe, cnbc's sri jegarajah is in london with more good morning, sri. >> good morning, courtney. as nancy said it's a similar overlay out here in europe a broad-based selloff. when you look at the individual bosses, the last time i checked them down around the tune of 1%. the magnitude of selling doesn't seem to be as bad as expected out here in europe, but it could worsen as the day progresses remember, in terms of time, we're about midway into the morning session. i have to say it's broad-based weakness in these markets led lower by financials.

remember on friday, deutsche bank came out with their number and it was the third consecutive loss some concerns there with the pace of restructuring at deutsche bank. and we have pnb paribas. herein lies the issue, is the earning picture and the underlying economic picture robust and healthy enough to really offset this higher rate or inflationary involvement, or that's the per sessiception of e markets. elsewhere, there is one plucky sector holding its head above water, that's ewe estimautiliti. utilities up by 0.2% overall, the picture is quite grim out here. we did get data today showing a very different story pmi numbers really knocked out of the park. sewed improvement from the flash

number sewed improvement from december final number as well and let's take a look at the euro while we are at it because the single european currency the common currency is knocking on the door once again at 125. this is where we stand they like the data but again, herein lies the problem for the equities markets especially the exporters and the backed higher currency a lot of challenges to face. courtney, wilfred, back to you >> sri, thank you very much. and also weighing on the ftse 100 as you say tougher environment than they've had the likes of the dax and ftse are down year to date which is not the case stateside still ahead on "worldwide exchange," the early markets slide with futures down 152 points plus, former fed chair janet yellen weighing in on the global jafl but before the break, here's the weather forecast from nbc's bill karins.

good monday morning to you, courtney and wilfred after a stormy weekend on the east coast with that rain and snowmaker, now we turn our attention to the northern rockies and now the snow is spilling out to the plains during the day, it's going to be a light snow event maybe minor travel concerns. iowa, 1 to 3 inches, chicago, indianapolis, detroit, you all have the possibility of getting maybe just a dusting to 1 to 2 inches at most not a huge ordeal but cold in chicago. a powdery snow, 18 degrees no problems on the east coast. that storm is exiting new england. maybe a leftover fog it's going to clear out for a beautiful afternoon. temperatures in the 30s. tuesday, stormy weather in texas. and that storm on the east coast inkeednesday with another big ramar. that's your business travel forecast more "worldwide exchange" when we come back so i got an offer on the business,

and now i'm thinking... i'd like to retire early. oh, that's great sarah. let's talk about this when we meet next week.

how did edward jones come to manage a trillion dollars in assets under care? jay. sarah. so i have a few thoughts on that early retirement... by focusing our mind on whatever's on yours. welcome back to "worldwide exchange." i'm wilfred frost with courtney reagan let's get you up to speed with the market action this morning futures down 168 points now, s&p down 12. nasdaq also down 12 points of course, coming off a week of 4% of declines for the dow 28 1/2 of which came on friday alone. let's have a look at other asset classes, currency which has not really been a factor over the last two week selloff. we did have the dollar rise for the first week in five, last week

but it was only up 0.5%. and it hasn't played into the selloff today. just about 0.2 moves lower for the dollar not much with the euro and pound. oil prices down a percent last week lower this week, 65.3. it's lighter week economic data on the wall street agenda, today, we'll get data ism services index tomorrow look for trade deficit and consumer credit. thursday, it's jobless claims and wholesale claims and 80 companies in the s&p 500 will be reporting results of this week. there's just one dow component, a big one, disney. numbers from bristol-myers, gm, chipotle, tesla, twitter and young brands and jerome powell will be sworn in today as the new fed chair succeeding janet yellen. on friday, yellen said solid

economic growth means the fed will likely continue to hike rates gradually. she also said that stock prices are elevated but stopped short of saying the market is in a bubble >> with the stock market the issue with priced earnings which is a measure of valuation is near the high end of its historical range and if we look at, for example, commercial real estate and other assets, we're seeing high valuations >> yellen stepped down as fed chief on saturday after one term president trump opted to replace her with powell, something she addressed in the pbs interview >> i would have liked serve an additional term. and i did make that clear, so i will say that i was disappointed not to be reappointed. >> yellen says she's supportive of powell whom she calls thoughtful and balanced. she'll become a fellow with the brookings institute where her predecessor ben bernanke also works. she's had an interesting time, you know, as head of the fed

it's nice to see a woman in that role, i have to say. >> definitely, i think it was interesting to hear that tidbit, that she would have liked to have stayed on is that was implied but not explicitly stated. >> exactly >> but she also said positive things about powell. as things go, i couldn't be happier for the joyce. and powell sworn in today. samsung heir jay y. lee is a free man after spending the past year in jail a south korean court suspended his sentence for charges including bribery and imbevelment in a scandal that brought down the company's president. lee had been the president in terms of happying to control samsung. still ahead on "worldwide exchange," the global selloff continues. a full market round up straight ahead

and if you stayed up late to watch the super bowl, the highlights is stay tuned those are next on cnbc

breaking market news, wall street pointing to a triple digit decline in the open, as friday's selloff spills into a new week wells fargo shares deep in the red, following a smackdown from the fed details ahead. it's a big day for philly as the eagles soar to their first super bowl win

it's monday, february 5th, 2018. you're watching "worldwide exchange" on cnbc. ♪ philadelphia freedom shine on me i love you ♪ good morning, a very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm courtney reagan in for sara eisen that was a great song. >> it was a great song and i was choking up and getting emotional for the eagles for my friend jim cramer >> what a good game. let's get a check of the global markets. that's really the big story of the morning. take a look at futures, down triple digits, down 189 points we've gotten worse for the wear here as the hour has worn on "worldwide exchange. we could be adding to that big drop that we saw friday. we saw the dow have its worst daily performance since the brexit when we kau 12.4%. 2.5% dropoff on friday

and the nasdaq's worst performance since august 2017. the vix, also a high of 17.85. and that was highest that we have actually seen since date after the election in 2016 take a look at the ten-year because we know this is a lot of the reason why we saw what we saw in equities. we saw the ten-year yield rise pretty quickly just last week last friday rather at 266 and then we ended the week at 2.85 here we are, right around that point again this morning oil prices not selling off nearly as what we saw in other broader markets. still, though, we did lose 0.5% down another 0.3% for wti and in was by far the weakest sector on friday alone shedding more than 4% and the s&p on the down side

nikkei down 2.5% a little gains for shanghai. as nancy hungerford reported earlier there's funds stepping up for the bigger names in shanghai clearly the broad theme across asia is one of severe downside europe is selling off 2, not quite as much as you would have expected the ftse just over 1%. now the likes of the ftse 100 and german dax are in negative territory for the year as a whole. >> let's check in on the markets and round things out for you and check out how global currencies are performing here. wilfred mentioned earlier in the hour but this time at least the dollar isn't having as big a hand as what we're seeing around the world with markets as we saw with several weeks ago with large drops. amid the comments in davos, you can see the euro, there, the yen

trading 109.8. and take a look the price of gold dropped last week 0.1 coming on friday the price of gold getting back just a bit sitting at 1340 and the price of bitcoin continues to sell off. now around the 8,000 mark or below that as you see that for coin base and other indices. let's talk more about the global mark market selloff gina, thank you for being here today. we had quite a move on friday. but so many have been calling for a collection for so long we see the dow off by 2.5% the s&p selloff by 2.1%. it sort of just does a little bit of a dent into the possible correction that so many of calling for. what do you think is healthy here what should we be watching for as it looks like the trend is going to continue in the early going for the markets here in the u.s.

>> well, i think a lot of people were expecting this pullback if you saw how strong the markets were for the last several months, this was necessary and part a healthy pullback i actually think we could continue to see more to go in this pullback. but generally, the underlying story which is the story of continued positive earnings, continued positive sales and analysts are also revising that so, you do have optimism underneath that. they're revising up sharply. all of that should actually be enough to put a bottom on this selloff. so, we're not calling for a massive bear case unless there's some outsized something like a political event that happens generally, the fundamentals don't support much more than a healthy downdraft. >> but, gina, isn't that precisely the point that because the economy is strong we've got fears that yields can keep going up and perhaps at a pace that markets can't handle, whether

that's at the short end because of the fed hikes or the long end? >> yeah, it's interesting that the long end has been moving the markets over the last several weeks because that really shows significant expectation of both inflation and growth and we haven't seen that in some time and so, that is enough to rattle markets, especially as it does affect other markets like real estate so, we're seeing the replacing of mortgage markets happening in this space and so, i agree that we're talking a very, very fine line and we've been in a goldilocks world for some time where you had low inflation and reasonable growth at some point, those two things can't exist together forever now, are we there yet? maybe, maybe not you know, rising wages are great for consumption, but they're bad for profits. this is the problem that the market is weighing right now do we necessarily see it's a problem? if you look at the phillips curve, we still don't have tremendous wage growth given the

unemployment rates we're at. so, i would say we're probably going to settle down after this. >> gina, so much of that selloff was tied to the move in the ten-year, but this morning, we continue to be at least indicating a lower open. but the ten-year really hasn't moved at least much from where we were on friday. what's your target for the ten-year, what should we be watching today and how that will have an interplay with equities? >> well, i think it's important. obviously, jay powell is being sworn in today we're having a change in the fed. nobody expects that this change is going to be any different jay powell was largely supportive of yellen so, we should see continuous moves. i think right now, the market is probably looking to see if we're going to have any shift at all i would say that the likelihood of that is pretty low. so, we should actually see the ten-year settle down from where we are >> gina, we've seen a selloff globally it's not just in the u.s

are you tempted to continue with markets around the world >> we continue to like emerging markets. we do think that the trade story is still robust even despite some of the weakness that you talked about in china. generally speaking the chinese stimulus continues to fuel a trade market that reverberates throughout the emerging markets. so that story hasn't really gone away we think that's probably going to persist over the next six to 12 months. >> gina sanchez. thanks for joining us. the dow is now down more than 200 points we'll have that up for you in a moment there it is. while it's on the other side of that, but we did cross that 200 level moments ago. we're looking at well over 0.5%. nasdaq down about 14 points. and s&p 13 points. among the stocks to watch today, wells fargo, shares are

down sharply as investors brace themselves for the first trade since friday evening's unprecedented reprimand from the federal reserve for the pervasive misconduct dating back to the scandal it will limit wells fargo growth by capping total assets this means they'll have to restructure the balance sleet in order to write loans which will custom up to $400 million in earnings according to ceo system sloan. outgoing chair janet yellen admitted that the punishment was unique and more stringent than other banks in the past. the bank will face a review on the 30th of september before the sanctions can be lifted. concurrently, wells fargo is also replacing four board members following three changes in 2016. and three just last month. and that share price down sharply in the premarket, some 7% or so >> but $400 million doesn't seem like that much there has to be a bigger cost

here >> so $400 million is really interesting. the limit on total assets what they're saying the $400 million is, in order to sell off other parts of the balance sheet and restructure the balance sheet so that they can still write loans within the terms of this restriction is what they're saying will cost them an limited $400 mm. if we just look at this decline. 7.5% decline would be 23.6 billion in market cap wiped off. now, if you apply the current multiple 16% to the 400 million in earnings this year, that would be 4.5% of market cap. clearly, we're selling off three or four times that amount. investors are looking at tim sloan's $400 million estimate in terms of impact this year and question will there be more. could that be because there's impact on company's image that they have to be in the defense mode and not the offense mode. and might they lose more from

the time and the biggest question is 30th of september, tim sloan seemed confident on the 30th of september they would have sorted things out by then such that the ban would be lifted. now, clearly, it's possible that doesn't happen and they're limited for going much longer. either way, we're selling off $23 billion, $24 billion in market cap which implies significantly more hit in analysts' and investors minds than the $400 million that systtim sloan mentioned. >> selling a positive. still ahead on "worldwide exchange," today's top stories and the roundup of the global market picture plus, your super bowl 2018 highlights and the best moments of that game coming up ♪ for your heart...

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will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪ welcome back to "worldwide exchange." if you're just getting up, let's get you up to speed on the market action which is not pretty this morning. down over 200 points briefly for the dow. in fact just better than that. 194 points s&p, down 13, nasdaq down 15. we're down around 0.5% or worse, coming off a 2.3% decline for the dow on friday. and the week as a whole. treasury and rising equities 2.85 on friday just below that on the ten-year.

right now, the 30-year remains well above 3, in fact, 3.1% this morning. let's talk more about markets, guy, thanks for joining us which sectors are you looking at to buy this morning? or are you staying out of the market until we saw a fall >> i think you got to look at financials, wilfred, courtney, good morning i think financials we have to look at the reason why, they theoretically should do well, if they continue to rise. obviously, it's scary. and the market has got everybody spooked. what's funny is, everybody waiting for the selloff with the pullback they get the pullback, oh, my god, the world's coming to an end. everybody wants to buy apple at 160, but they want to do it when 'is trading at 1235e9. think about that and it makes sense. when it gets there it's never for the reasons you thought. you have to try to take emotions out of it.

look at the sectors that typically do well. and i would point to the financials i'm not saying you race to it today. with that said, financials is the first place i'd look >> guy, that's a positive, constructive perspective despite the big selloffs last week and this morning. is that a perspective you're able to apply more broadly to the market as a whole or just financials? >> yeah, i'm not trying to be glib, because obviously there are things going on that are significant, without question. you mentioned a rise in rates. you also have a rise in rates while the u.s. dollar is going low. you have a lot of cross currents that are probably not as beneficial to the investor and quite frankly u.s. consumers again, it's trying to take emotion out of the equation and find things that theoretically should be working in an environment that we find ourselves now. i'll give you another example, look at what's going on at qualcomm an interesting story aerospace on the upside. you're starting to see a

pullback there but nothing has fundamentally changed in their businesses. the broadside has big concerns without question i think the move in the dax is something that definitely you should be concerned about, quite frankly, the german market led us up a couple years ago and you can make an argument that maybe they're leading us down now but with that said, you have to try, again, take emotion out of the equation everybody is waiting for their pullback well, you know you're getting it now. don't be frightened by it. >> i know you've seen this before, it sounds like from your earlier commentary you think we could be in for a couple more down days. dow futures down 200 points. if you're talking to the investor at home when do they know the point to get in the market today or still wait a session or two. >> great question. this is what i suggest to people and do a history lesson here it's not that far back, courtney go back to the tuesday after martin luther king day, i mention that specifically because on that day, you saw the

market open up higher in a significant way. but you also saw the volatility index open higher as well. and all throughout the day, as the market then sold off and reversed volatility went high. what's my point? you're looking now for a day when the market sells off, but the volatility index opens lower. you're going to get that day within the next couple of weeks. and i think when you see that, all right, we capitulated to the bottom in the dow, maybe now is the time to get in i think you take your cues from the lower market, lower volatility index the same way you took your cue on the tuesday after martin luther king day. from the higher market to higher volatility index >> guy, thank you for joining us, guy adami money trader >> thanks have a great day >> the dow down 193 points the big story outside of the markets this morning, congratulations go to the philadelphia eagles. newest super bowl champs

despite coming into the game as underdogs, the eagles beat the new england patriots 41-33 this is the first super bowl title in franchise history after losing twice before. eagles quarterback nick foles outdueled tom brady. he threw three touchdowns and caught one himself as well >> that was awesome. >> and was named super bowl mvp. i caught the first half. i didn't stay up for all of it >> i did i stayed up for all of it. i have to admit on the final play, i actually thought tom brady was going to win it. he throws that bomb and i thought, oh, my gosh he didn't get it the timing and everything would have to be perfect he is potentially the greatest of all time. >> and foles, fantastic. and congratulations to jim cramer, i'm hoping these still asleep >> maybe he's so excited. >> i was watching his twitter

feed hilarious how unbelievably passionate he was. we're approaching the top of the hour team is getting ready for "squawk box. becky joins us hey, becky >> good morning, wilf, and courtney guys, i picked out my clothes today at 2:00 yesterday afternoon. i had total faith this is going to be what happened. >> i believe that if you tweeted that out >> no, no, i can say honestly, my parents and all my brothers massive eagles fans have been my whole life growing up in south jersey this was a really, really big deal thrilled for jim the green is a reflection of who is going to win the super bowl but not necessarily what's happening in the markets today you guys have been watching that this this morning. if you're looking for a big bounceback of a decline of 166 points friday. the decline of 2.5% last week. yeah, look again red across the board dow futures indicated down almost down 200 points, s&p down

13 nas danger off by 13 as well that's got a lot of people starting to wonder this is the longest we've gone, two years. an amazing run a climb of 51% without seeing a 5% pullback well, that could be about to change we've got guests all morning we've got phil orlando and steven whiting and tony james, blackstone's chief operating officer. we'll get you caught up on what their thinking and what's happening in the markets and just how worried you should be about all of this. also, it's only been three weeks and here we are getting ready for a potential government shutdown this week coming up on thursday is the deadline things don't look like they've changed too much we've got jonathan swann from axios comes on what that might mean if you're trying to add up the risks for the market plus, we've got trade to talk

about, nafta carlos gutierrez, the former commerce secretary will be joining us as you guys know, it's yellen's last day jay powell will be inducted today. >> and janet yellen, her last day, the dow down. still ahead on "worldwide exchange," don't leave yet, we're counting you down to today's open dow tufures down nearly 200 points everything you need to be watching on the day ahead when we come back s stay confident for over 80 years. call us or your advisor. t. rowe price. invest with confidence.

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with the big selloff over the last couple of weeks or the data has the data gotten worse or not? >> data hasn't gotten worse. you think about what turned it over the last year, global growth turning into solid earning and low perception of risk and volatility. only one of those things is sustainable. it looks if earnings can match the expects 15% gain that people are expecting for this year, if it comes close, we're looking at another solid year despite the volatility we're seeing right now. >> michael, is this is a healthy look adoidoing what we do >> if you look at the risk asset, they were extremely overextended fun go back to last week, bond yields were 2.6% and all that, would 53 were volatility absolutely it was an overcorrection if you look at the chart of the

vix, you see a spike like this i completely agree with james, if theic picture is solid here. we do obviously have to look at bond yield and inflation inflation is a big wildcard. >> even if you do agree with james that we can have a positive year but look past volatility do you think volatility at least is here to stay up and down sharply? >> yes, i think the does the floor of vix come to a higher level. and it comes down to the treasury is getting into a more interesting spot here. do we get to 3% and stay there we've seen so many treasury tips and selloffs where those tips are bought by trish sorry bulls. and if the ten-year is going to range from 3 to 3.5 for the year, we're definitely going to see richer volatility. it increases earnings

visibility for every 100 basis points in top growth in the s&p 500 you only need 10 basis points in margin contraction to offset that >> james, a quick question in terms of other countries' global growth clearly, europe is very strong pmi up in the high 50s is growth in some areas like china? and is that a concern whether it can boost the u.s. this year >> we still see really strong growth for this year and certainly next year as well. you look at areas like china, maybe there's some slowing but again we're talking about 6% plus growth. latin america in the emerging markets regions, that's increasing as well to go back to this pullback, yields are rising, yes, as they should at the end of the cycle the key question to ask, when global yields finally rise we're seeing hints of that german fields are above 70 basis points but you'll have to see that gap between that and the u.s. to be a real concern.

>> james, thank you. michael, thank you for joining us that it is for "worldwide exchange." futuring points to 200 points on the dow. "squawk box" is next

dow futures pointing to triple digits losses as wall street looks set to resume providing we don't selloff red around the world asia also dropping ahead, we'll ahead over assea s. and a major slap from janet yellen and yes, the eagles won last night. it's monday, february 5th, 2018. "squawk box" starts now. ♪

>> announcer: live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. live from the nasdaq market set on times square. congratulations to the philadelphia eagles this morning. the team soaring past the patriots last night. final score, 41-33 eagles winning their first super bowl ever. stopping the patriots from winning the most super bowls ever amazing. i'm becky quick along with andrew ross sorkin joe is out this morning. the chairman of oshares ttx. and i didn't know the entire story. you were in boston last night? >> i was i never missed the party i